Bond Math

[budge]

On Fri, 25 Oct 2002 at 10:49am Daniel Davies wrote:
>
> So yeh, basically, the product of the probability of
> default and the loss in event of default ought to be
> such as to make the expected return on a C-Bond equal to
> the expected return on a Treasury bond (plus a small
> residual risk premium of maybe 1-2% for various
> technical reasons).  I haven't checked Michael's
> multiplication but it looks right.

Has anybody heard Stglitz's talk advocating
default/bankruptcy of some of the debtor countires?  I heard
him on some PBS show in the last month or so, but I only
caught a little bit of it.  It sounded not unlike what you
outlined here once some time ago and reminded me of that
convo...

--
no Onan